Global Pulse

标签： Oceania

大洋洲

  • Elon Musk’s X Corp given $750,000 penalty for eSafety breach

    Elon Musk’s X Corp given $750,000 penalty for eSafety breach

    Elon Musk’s social media giant X Corp has been ordered to pay a total of $750,000 in penalties and legal costs after being found in breach of Australian online safety regulations for failing to respond to a regulator’s inquiry into measures targeting child sexual exploitation material. The case, which stretched more than two years, has set a clear precedent for global technology companies that even large platforms cannot ignore national regulatory requirements when operating in foreign markets.

    The story dates back to early 2023, when Australia’s eSafety Commissioner Julie Inman Grant issued a mandatory transparency notice to Twitter, alongside other major social platforms, seeking detailed information on what steps each platform was taking to detect and remove illegal child sexual exploitation content from their services. Just weeks after the notice was issued, Elon Musk completed his $44 billion acquisition of Twitter and rebranded the company as X Corp, merging the original Twitter entity into the new corporate structure.

    X Corp missed the original March 29, 2023 deadline to submit a complete, adequate response to the regulator’s questions. The company only addressed the gaps identified by eSafety in a follow-up submission on May 5 of that year. When eSafety brought legal action over the missed deadline, X Corp mounted a legal challenge, arguing that the notice had been issued to the original Twitter entity which no longer existed, so the new corporation had no legal obligation to comply.

    That challenge was first rejected by Federal Court Justice Michael Wheelahan in early 2024, and the ruling was later upheld by the full bench of the Federal Court in July 2024. On Thursday, Justice Wheelahan handed down the final penalty at a hearing in Melbourne: X Corp must pay a $650,000 civil penalty for the contravention, and cover $100,000 of eSafety’s legal costs stemming from the court action.

    In his written judgment, Justice Wheelahan emphasized that Australia’s Online Safety Act, which grants eSafety the power to issue such information notices, is designed explicitly to protect Australian internet users. “The reporting requirements under the Act are an essential aspect of enforcing those expectations,” he wrote. “Accordingly, where the operator of a large social media platform has failed to comply with those reporting requirements, the public has an interest in the Commissioner seeking and obtaining a public declaration of contravention, which will contribute to a deterrent effect.”

    In a post-ruling statement, eSafety Commissioner Inman Grant said the penalty sends an unambiguous message to all technology companies that offer services to Australian users: they are bound by Australian laws, regardless of their size or ownership structure. “Meaningful transparency is critical to holding technology companies to account,” she said. “This is not only a key part of our work as Australia’s online safety regulator, it also provides the Australian public with important information about how these companies are tackling the worst-of-the-worst content on their platforms.”

    The ruling comes amid broader global momentum for stricter online child safety regulation, driven in part by News Corp Australia’s high-profile “Let Them Be Kids” campaign. The campaign spent 18 months documenting the widespread harm social media use causes to Australian children’s mental and physical health, including sharing testimonies from families who lost children to suicide linked to harmful online content. Its advocacy helped push Australia to become the first country in the world to pass legislation requiring a minimum age of 16 for social media access, a law set to go into effect in December 2025. To date, 52 other countries have announced they are considering adopting similar age restriction regulations.

  • ‘Ready for violence’: Serbian hooligans target protesters

    ‘Ready for violence’: Serbian hooligans target protesters

    For over a year, Serbia has been roiled by mass, student-led anti-government demonstrations that have grown into one of the largest political challenges to President Aleksandar Vucic’s administration since the fall of Slobodan Milosevic in 2000. What began as calls for a transparent public inquiry into the November 2024 railway station canopy collapse that killed 16 people has snowballed into a broader movement demanding early national elections – and as the protests have expanded, so too has targeted violence against movement participants.

  • Elon Musk’s X fined for not complying with Australia’s child protection laws

    Elon Musk’s X fined for not complying with Australia’s child protection laws

    A years-long legal standoff between Australian regulators and Elon Musk-owned social media giant X Corp has come to a close, with a national court upholding a substantial fine for the company’s deliberate failure to adhere to national online child safety rules.

    The dispute traces back to February 2023, when Australia’s independent online safety regulator eSafety issued a formal transparency request to Twitter, the predecessor of X. The regulator demanded internal information about the platform’s systems and practices for identifying and removing child sexual exploitation material circulating on its service. One month after the request was filed, Twitter completed its merger into X Corp, a corporate restructuring led by Musk.

    X initially refused to comply with the information order, arguing that the original legal demand was issued to Twitter — an entity that no longer existed after the merger — and that the new X Corp bore no responsibility to meet the request. For three years, the company fought the regulator’s enforcement action in Australian courts, even after an earlier ruling last year confirmed X was legally obligated to respond to the transparency notice.

    On Thursday, X reversed its position and formally admitted to the wrongdoing. Justice Michael Wheelahan of the Australian court ordered the US-based company to pay a total fine of A$610,000, adjusted up from the original 2023 penalty, plus an additional A$100,000 to cover eSafety’s legal costs. The combined penalty amounts to approximately US$463,000, with full payment due within 45 days.

    In his ruling, Justice Wheelahan explained that a penalty near the maximum allowed under Australian law was necessary given X’s size and global reach. “A penalty near the maximum is appropriate in the case of the respondent, which is a substantial corporation so that it operates as a real deterrent and is not simply a cost of doing business,” he wrote in his judgment.

    This is not the first high-profile clash between X and Australia’s eSafety regulator. The agency has previously taken on the platform over its non-compliance with Australia’s world-first ban on social media use for children under 16, and its refusal to take down graphic footage of a 2024 Sydney church stabbing that spread widely across the platform. Tensions escalated dramatically in 2024, when Musk referred to eSafety Commissioner Julie Inman Grant as a “censorship commissar” in a post to his 196 million X followers. In the aftermath of that post, Grant revealed she received death threats, and her children’s personal information was leaked online in a doxxing attack.

    In a public statement released after Thursday’s ruling, Grant emphasized that the outcome reaffirmed the importance of holding large tech platforms accountable for child safety online. “Meaningful transparency is critical to holding technology companies to account,” she said, noting that the information request at the center of the case was designed to shed light on how platforms address the spread of harmful child sexual abuse material.

  • Laser hair removal device sparks bomb scare at Melbourne airport

    Laser hair removal device sparks bomb scare at Melbourne airport

    One of Australia’s busiest regional air travel hubs was thrown into chaos on Thursday, when two unexpected everyday items sparked a full-scale bomb alert that suspended domestic flight operations for nearly half a day. Avalon Airport, the second-busiest air gateway in the state of Victoria located 31 miles southwest of central Melbourne, was placed under partial lockdown after security screening staff flagged a suspicious piece of checked baggage just before 6 a.m. local time, which equals 8 p.m. GMT on the previous day. Emergency protocols were immediately activated, with local law enforcement and bomb disposal units dispatched to the scene to investigate the potential threat. International flight schedules remained unaffected throughout the incident, but all domestic operations were paused as a precaution, leading to widespread cancellations and delays for thousands of passengers. After a thorough examination by the bomb squad, the suspicious package was found to contain nothing more dangerous than a laser hair removal device and an insulated hot chocolate container, a far cry from the explosive device authorities had prepared for. The owner of the baggage, a Melbourne resident, was taken into custody for questioning immediately after the discovery, but was eventually released without any criminal charges, Victoria Police confirmed. According to Acting Inspector Nick Uebergang of Victoria Police, the uncooperative behavior of the baggage owner extended the duration of the security lockdown. “The person who had the bag wasn’t too cooperative with us to start off with, which made things a little bit difficult. They probably could have averted things and we could have got out of here a little bit quicker,” Uebergang told reporters. Full operations at the airport resumed approximately four hours after the initial alert was raised. In a statement following the incident, an Avalon Airport spokesperson emphasized that the rapid, by-the-book response to the potential threat highlighted the effectiveness of the facility’s security protocols. “This response demonstrates the vigilance of the screening and security processes, and precautionary measures were taken immediately to ensure the safety of passengers, staff and the broader community,” the spokesperson said. Many passengers caught up in the sudden lockdown shared their chaotic experiences with local media outlets. One traveler who arrived at the airport around 7 a.m. told ABC Radio Melbourne, “We arrived at the airport around 7am and they had just put up the closure. No one sort of knew what was going on. We knew something was fairly significant because there were a lot of police cars and other sort of cars going into the airport.” Manjeet Singh, who was scheduled to board a flight to Brisbane, said he was directed to wait in the airport carpark with no basic amenities provided during the lockdown. “There’s no arrangements, no bathroom, no toilet, no beverages, no nothing,” he told local newspaper The Age. As Victoria’s second busiest aviation hub, Avalon Airport is a key base for budget airline Jetstar, a Qantas subsidiary that operates both domestic and international services from the facility. By the time the airport reopened, two domestic services – one incoming flight from Sydney and one outgoing flight to Sydney – had already been cancelled, with multiple other domestic routes facing lengthy delays. No injuries or actual security threats were reported during the incident.

  • Storm chasers: Young guns have the chance to do something special as Melbourne look to heap more misery on Bulldogs

    Storm chasers: Young guns have the chance to do something special as Melbourne look to heap more misery on Bulldogs

    The National Rugby League (NRL) blockbuster between the Melbourne Storm and Canterbury Bulldogs on Friday night will go ahead without three key Storm players, but legendary head coach Craig Bellamy is framing the absences as a once-in-a-lifetime breakout chance for the club’s rising young talent.

    Star playmaker Cameron Munster and dynamic hooker Harry Grant, two of the Storm’s most influential All-Star core players, have been called up to State of Origin representative duty, joining lock forward Trent Loiero in stepping away from club fixtures for the representative round. In their place, Bellamy has shaken up his starting lineup to give untested youngsters their first real taste of top-flight rugby league.

    Keagan Russell-Smith will get the nod at five-eighth, slotting into the huge gap left by Munster – a player who has dominated the position at club, state, and international level for years. This will mark only Russell-Smith’s second NRL appearance, following a single outing for the Storm back in 2022, with his development slowed by repeated injury setbacks that have kept him off the pitch for extended stretches. Trent Toelau will step into the starting hooker role, while young Gabriel Satrick will make his first-grade debut off the interchange bench, where he is expected to bring an energetic running threat from dummy-half.

    While losing two of the game’s biggest superstars will undoubtedly test the Storm’s push for a third consecutive win, Bellamy says he has seen countless young prospects step up during the annual State of Origin break over his decades-long tenure, and he is confident this cohort can deliver similarly memorable performances. He urged the rookies to stick to their strengths and avoid overcomplicating their approach as they adjust to the intensity of top-level NRL.

    “We’ll certainly feel the absence of our representative players, but this is exactly the sort of opportunity these young guys have worked so hard for,” Bellamy said. “Gabe gets his first crack at first grade this weekend, Keagan has only played one game two years back, and Trent has a handful of NRL appearances under his belt. This is incredible high-level experience for them, and the biggest thing they can do is keep it simple, play the way they know how, and lean into what makes them effective.”

    Speaking specifically of Russell-Smith, who faces the unenviable task of replacing one of the sport’s best five-eighths, Bellamy highlighted the young playmaker’s natural footy smarts and defensive toughness as key assets that will help him adapt to the pressure.

    “He’s a sharp kid, a really intelligent footballer, and the thing I love most about him is how tough he is,” Bellamy said. “He’ll handle the defensive side of the game no problem. His development has been a bit slower than we initially hoped it would be, that’s all down to the injuries he’s dealt with. Fingers crossed this gives him a good, consistent run of game time now to build momentum.”

    For the Storm as a whole, Friday’s clash comes at a key turning point in the season. After a disastrous seven-game losing streak that put their finals hopes in serious jeopardy, the club has steadied its form with back-to-back wins, restoring much-needed confidence to the roster. They will face a Bulldogs side that is mired in its own slump, having dropped five consecutive matches and struggling to put points on the scoreboard in recent weeks.

    The veteran coach declined to comment on the Bulldogs’ ongoing struggles, instead choosing to focus on his own team’s resurgence and their renewed bid to secure a spot in the end-of-season finals. Bellamy noted that back-to-back wins have already made a tangible difference to the squad’s mindset after a brutal losing run.

    “When you get through a tough stretch like we did and start picking up wins again, that’s where you rebuild your confidence,” he said. “This is what these players do for their career. Aside from their families, this game is the most important thing in their lives. When you get a little bit of success like we’ve had over the past couple of weeks, you start to feel better about yourself and about the guys you’re running out onto the pitch with.”

  • AFL 2026: Essendon coach Brad Scott responds to ‘rampant speculation’ about senior players

    AFL 2026: Essendon coach Brad Scott responds to ‘rampant speculation’ about senior players

    Ahead of one of the Australian Football League’s most anticipated annual fixtures, the Dreamtime at the ‘G clash this Friday, Essendon Bombers head coach Brad Scott has moved swiftly to push back against growing off-field speculation, addressing two swirling rumors that have dominated headlines around the club this week.

    Currently sitting near the bottom of the AFL ladder with only a single win from their opening 10 rounds, the club and Scott have been under intense public and media scrutiny. Recent unconfirmed reports claimed the Bombers’ senior player core was deeply confused about the timeline and trajectory of the club’s ongoing rebuild, a claim Scott outright rejected during his weekly Thursday press conference.

    According to Scott, the reports of internal confusion are nothing more than unsubstantiated “rampant speculation” that does not align with the actual situation inside the club. He emphasized that the club’s leadership has maintained full transparency with every player about the rebuild’s direction, and that every player currently on the Essendon list is included in the club’s long-term plan for future success.

    “Every player on our list is well and truly capable from an age perspective and a capability perspective of being part of our next successful era,” Scott explained. “We’ve been very clear with those players: ‘Look, this is where the club is at, this is the direction of the club’. I don’t think we’ll have a player on our list, at least voluntarily, retire in the next two, three, four years. Everyone is part of the plan.”

    The coach also noted that it is normal for players to prioritize their individual match-to-match performance rather than long-term organizational strategy, and the coaching staff has actively worked to keep the group focused on competing week in and week out, rather than getting distracted by off-field noise.

    In addition to addressing speculation about player unrest, Scott also shut down growing talk about his own future at the club, amid mounting pressure from fans and pundits following the team’s poor start to the season. The 30-year veteran of the sport said discussion about his job security simply does not concern him.

    “Quite frankly, it just doesn’t faze me, I don’t live in that space. It’s not and has never been about me,” Scott said. “I’ve been in this game for over 30 years and I understand how things work and what people choose to talk about and what people are interested in. People can be interested in that, it just doesn’t interest me.”

    On Friday night, Essendon will take on a Richmond side severely weakened by a lengthy injury list, in the annual Dreamtime at the ‘G match, one of the marquee events on the AFL calendar that celebrates Indigenous contribution to Australian rules football.

  • ‘Disappointed with my performances’: Nathan Cleary out to right last year’s wrongs after ‘devastating’ Origin loss

    ‘Disappointed with my performances’: Nathan Cleary out to right last year’s wrongs after ‘devastating’ Origin loss

    A year on from one of the most crushing defeats of his professional career, NSW Blues star halfback Nathan Cleary has opened up about the lingering pain of last year’s State of Origin decider loss, revealing he is turning that devastating disappointment into fuel as his side prepares to kick off the 2025 series on home soil next Wednesday.

    The 2024 series came to a humiliating end for the Blues at Sydney’s Accor Stadium, where Queensland Maroons ran riot in the first half to secure a comfortable 12-point victory, wasting NSW’s shot at claiming the championship on home turf. The blow hit the squad hard in the post-game sheds, with Cleary leaving the defeat to process alongside his family, who helped him break down what went wrong on the night.

    Reflecting on the loss from Blues training camp this week, Cleary did not sugarcoat the severity of the heartbreak. “It’s never nice losing, but particularly such a big game being a game three Origin at home as well,” he said. “It was devastating, I can’t lie. But you’ve sort of just got to pick yourself back up, dust yourself off, move forward, and get better. There’s no point sort of sulking about it and feeling sorry for yourself. Here we are a year on, and I’m hoping I can use those lessons to play better.”

    Cleary explained that the sting of the defeat has become a quiet motivator, pushing him to grow both as an athlete and a person over the past 12 months. “I think you’ve got to grow from it. You can’t live in the past too much, but you can learn from it. That pain is definitely a sort of burning fire there. But I sort of used that last year to try and just get better as a person and as a player.”

    The world-class playmaker, who has three State of Origin series wins to his name, has long faced questions over whether he has dominated the iconic representative arena the same way he consistently dominates the NRL for his club side Penrith Panthers. His 2024 decider performance was widely marked as below his usual high standard, leading to renewed public criticism of his Origin form. But Cleary insists that proving external doubters wrong is not what is driving him ahead of the new series.

    “It’s not so much doubters (for me) to prove wrong,” he said. “I know what I need from myself, and I’ve been disappointed with my performances in the past. I’d say that I am my own harshest critic. So, it’s not so much about proving doubters wrong, it’s about repaying the faith that Loz (NSW coach Laurie Daley) has shown in me and the Blues have shown in me, but also my family and stuff as well. It’s about repaying that faith and also to myself. I know what I’m capable of and it’s trying to reach those heights.”

    Drawing on years of experience in the representative fixture, Cleary noted that State of Origin requires a uniquely sharp focus, given its far higher intensity and fewer chances to seize game-changing moments compared to club football. “I think it’s just you sort of understand Origin is different to club footy, and you just don’t get as many opportunities as you would in regular season games. You’ve got to be prepared to take those and just be willing to put your best foot forward and not step back and just play. It’s the hardest game you’ll play, no doubt. Just the intensity and the physicality of it.”

    “As I said before, it’s those minuscule moments. There’s not many that pop up in a game, so you’ve got to be ready to take them. If you miss them, you might not get one again. It’s definitely something that I’ve learnt over time, but you’ve got to put yourself in the frame to be able to take those moments, too.”

    This year’s series opener will see Cleary reunite in the halves with Parramatta Eels star Mitchell Moses, marking just the second time the pair have started together at representative level. The duo steered the Blues to a win in last year’s opening game, but a camp injury ruled Moses out ahead of game two, cutting their partnership short before the decider. Despite ongoing questions over whether two specialist halfbacks can successfully coexist in Origin’s halves combination, Cleary said he is confident the pair can build on their strong 2024 opening.

    “I always watch Mitch from afar in admiration of his game,” Cleary said. “I think he’s easily one of the best halfbacks in the game and being able to team up with him again – we only got the one game last year – but I thoroughly enjoyed it and looking to build on that now. I hope we can solidify that partnership and grow it. I think Mitch actually grew up as a six, so it’s obviously there for him and he’s got that X-factor about him as well. I thought game one last year we combined pretty well, and that was only off 10 days of preparation or something. So we’re looking to build on that again. It’s just been fun getting to team up with him in these first few days of training and looking to build on it.”

    In a side note on team selection, Cleary also defended Bulldogs captain and former Penrith teammate Stephen Crichton, who returned to training on Thursday after missing a session the prior day with a shoulder injury. Crichton has faced heavy criticism for his club form in 2025, but Cleary said the backlash is unfounded, pointing to his long track record of delivering in high-stakes matches.

    “He’s never shied away from a big moment,” Cleary said. “I think the criticism is pretty ridiculous. Every time he’s been asked to do a job in a big game, he’s gone over and above. I absolutely love taking the field with him and just his leadership as well, his presence. Every time I look across and I’m next to him on the field, I feel great so I’m happy he’s there.”

  • Juve risk disaster as Serie A’s Champions League race goes down to the wire

    Juve risk disaster as Serie A’s Champions League race goes down to the wire

    The final matchday of Italy’s Serie A season has arrived with one of the most tense European qualification battles in recent memory, and Juventus faces a make-or-break clash that could see its entire season collapse into disappointment. Hired in October when the club sat seventh in the table, Luciano Spalletti was brought to Turin with one non-negotiable objective: secure a spot in next season’s UEFA Champions League. Now, 38 rounds into the campaign, that goal hangs by a thread heading into Sunday’s derby against city rivals Torino.

    Juventus haven’t tasted defeat against Torino in 11 years, a run that has made this Turin showdown one of European football’s most one-sided local rivalries. But despite Torino’s comfortable mid-table standing that has left them with nothing significant to play for, their ability to disrupt top title and qualification contenders makes them a dangerous opponent for a Juventus side reeling from a crippling 2-0 home defeat to Fiorentina. That loss dropped Spalletti’s side to sixth in the table, leaving them needing not just three points against Torino, but favorable results from the other contenders fighting for the last two Champions League spots.

    The stakes extend far beyond bragging rights and European prestige. Missing out on the Champions League would deliver a massive hit to Juventus’ revenue, dramatically reshaping the club’s transfer plans and squad moves during the upcoming close season.

    Just two points separate Juventus from the four teams competing for the two remaining Champions League slots. Third-placed AC Milan host already-relegated Verona at the iconic San Siro, while fourth-placed Roma travel to face similarly relegated Verona. Sitting between Juventus and the top four is fifth-placed Como, who host dropzone side Cremonese in a match that will simultaneously decide both Champions League qualification and the final Serie B relegation spot. Jamie Vardy’s Cremonese hold the last safety spot by just a single point, behind Lecce who welcome Genoa on the final matchday.

    AC Milan, the seven-time European champions, looked to be sliding out of the race just two weeks ago, mired in on and off-field crisis. A critical away win against Genoa last weekend has now put Stefano Pioli’s side firmly in pole position to secure qualification, with Cagliari already guaranteed safety ahead of their trip to the San Siro. Over 70,000 fans are expected to pack the famous stadium for the clash, a stark contrast to Milan’s previous home fixture, when thousands of supporters left early in protest after the side fell three goals behind to Atalanta. That defeat saw Milan owner Gerry Cardinale publicly respond to fan criticism accusing him of prioritizing profit over on-field success, with hints of major organizational and coaching changes coming this summer.

    One of the biggest stories heading into the weekend is the surprise return of Luka Modric. The 40-year-old Croatia captain was expected to miss the remainder of the Serie A season after fracturing his cheekbone in a collision with Juventus’ Manuel Locatelli last month. At the time of the injury, reports indicated Modric would be sidelined until this winter’s World Cup, requiring surgery to repair the damage. But less than four weeks after the operation, Modric has returned to training wearing a protective face mask, and is all but confirmed to start for Milan against Cagliari barring any last-minute setbacks. The veteran midfielder holds an option to extend his stay at San Siro for one additional season following what is widely expected to be his final World Cup appearance.

    Elsewhere, Antonio Conte will take charge of Napoli for the final time on Sunday, when already-qualified Napoli host Udinese in one of the weekend’s five dead rubbers, with the visitors having nothing to play for. Conte is widely expected to leave the southern Italian giants to take the vacant Italy national team head coach position, returning to the role for a second spell. The Italian Football Federation will not announce the new national team coach until after the election of a new federation president on June 22, coming two weeks after Italy’s pre-tournament friendlies against Luxembourg and Greece.

    Key context heading into the final matchday: just two points separate the four contenders competing for the two remaining Champions League spots, and Roma have not qualified for the competition in seven seasons. The full final matchday fixture list (kickoff times in GMT) is as follows: Fiorentina vs Atalanta (1845, Friday); Bologna vs Inter (1600, Saturday), Lazio vs Pisa (1845, Saturday); Parma vs Sassuolo (1300, Sunday), Napoli vs Udinese (1600, Sunday), Cremonese vs Como, Lecce vs Genoa, AC Milan vs Cagliari, Torino vs Juventus, Verona vs Roma (all 1845, Sunday).

  • Rashed Ateem: Man accused of groping women in Melbourne’s CBD faces court

    Rashed Ateem: Man accused of groping women in Melbourne’s CBD faces court

    A 36-year-old man facing multiple charges connected to a string of groping and threats targeting women in central Melbourne has been publicly identified during a court hearing. Rashed Ateem appeared before Melbourne Magistrates Court on Thursday, where he answered to two counts of sexual assault and two additional counts of assaulting police officers.

    The alleged incidents date back to the afternoon of March 3, when authorities say Ateem carried out a series of unprovoked attacks on multiple women in Melbourne’s Central Business District. Police received emergency triple-0 calls around 5:30 p.m. that day reporting a man randomly assaulting passersby near the iconic Flinders Street steps, with some of the attacks described as sexually motivated.

    Officers quickly located the suspect on Bourke Street and took him into custody. But the arrest did not proceed smoothly: police allege Ateem spat at responding officers and physically assaulted them during the apprehension. The violence left a senior police constable with injuries serious enough to require transport to a local hospital for medical treatment.

    During Thursday’s initial hearing, Ateem’s legal team requested an adjournment of the case. Magistrate Gerard Lethbridge granted the request, scheduling the next court appearance for June 1. As Ateem exited the court building following the hearing, he was photographed smiling toward assembled media outlets.

    The string of random alleged attacks in one of Melbourne’s busiest tourist and commercial hubs has raised ongoing community concerns about public safety in the city’s central district, with police continuing to urge any potential additional victims to come forward to assist with the investigation.

  • Easing rate hike fears push Aussie sharemarket to best day in six weeks

    Easing rate hike fears push Aussie sharemarket to best day in six weeks

    Australia’s benchmark stock index notched its strongest single-day gain in six weeks on Thursday, as a surprisingly sharp uptick in national unemployment fanned widespread investor expectations that the Reserve Bank of Australia will hold interest rates steady at its upcoming policy meeting. The uptick in joblessness, paired with a rebound on Wall Street that ended a three-day losing streak for US equities, created a bullish trading environment across most of the Australian sharemarket.

    New official data released this week showed Australia’s unemployment rate climbed 0.2 percentage points to 4.5% in April, outpacing analyst forecasts for a much smaller increase. The report also recorded an unexpected drop of 18,600 jobs across the economy, versus consensus predictions of a 15,000 job gain. For investors, this cooling labor market readout signals the RBA is unlikely to push through additional interest rate hikes in 2024, a shift that is particularly beneficial for the Australian market’s heavy weighting of rate-sensitive sectors: financial services, real estate, and consumer discretionary stocks.

    “While a slowing jobs market is unwelcome news for job seekers, it removes a key catalyst for further aggressive monetary tightening from the RBA, which acts as a tailwind for the ASX200,” explained Tony Sycamore, a market analyst with online trading platform IG. By the closing bell on Thursday, the ASX 200 had jumped 1.47% to settle at 8621.7, marking its largest daily increase since early April. The broader All Ordinaries index followed suit, climbing 1.4% for the session, with eight out of 11 tracked market sectors ending the day in positive territory.

    Global market moves also supported the local rally: Japan’s Nikkei 225 surged 3.1% overnight, oil prices recovered some losses from the prior session’s sell-off, and gold prices edged higher. The mixed economic data did push the Australian dollar lower, a shift that supports export-focused domestic sectors.

    Mining stocks led Thursday’s gains as a group, posting a 2.6% sector-wide increase. Building materials giant James Hardie rose 5.4% even after analysts at Macquarie and Morgans adjusted their price targets downward, with both revised targets still sitting well above the stock’s closing price of $27.99. Evolution Mining climbed 3.8%, Rio Tinto gained 3.2%, and lithium developer Liontown Resources spiked 4.2%. The only major downside move in the mining space came from gold producer Northern Star Resources, which fell 2.1% following the announcement that its long-serving managing director would step down after 13 years at the helm.

    The day also marked a milestone for Australian retail, as jewellery and body piercing retailer Skinkandy made its debut on the ASX, closing its first trading session up 6.8% from its initial public offering price. Samy Sriram, an analyst with investment platform Stake, noted that the Skinkandy IPO marks a break from the recent trend of Australian public listings being dominated by mining and materials companies.

    “With the recent listing of lifestyle brand Koala and now Skinkandy, we may be seeing a wave of more diversified companies choosing to go public on the Australian exchange,” Sriram said. “The IPO offers investors exposure to a high-growth retail concept, and its 27% EBITDA margin is particularly strong for a service-led retailer. If the company can maintain that margin as it expands internationally, its current valuation becomes much easier to justify. Early trading momentum suggests investors are willing to give the management team the benefit of the doubt for now.”

    Real estate stocks also rallied on the prospect of steady interest rates, with retirement village operators Gemlife Communities climbing 4% and Lifestyle Communities gaining 2.7%. Major industrial and retail property groups including Goodman Group, Vicinity Centres, Stockland, Charter Hall, and Mirvac all notched gains of more than 2% each. Buy now, pay later provider Zip Co added 2.7% after the company announced it had secured permanent rights to the Zip brand following a recent legal dispute.